A reserve requirement of 5 percent implies a potential money deposit multiplier of

In the short-run, we assume that the money prices of goods and services are

A) temporarily fixed. B) permanently fixed. C) allowed to fluctuate. D) equal to long-run prices. E) fully employed.

Which of the following is true when a country is experiencing a trade surplus (NX > 0)?

A) Demand for domestic goods is equal to the domestic demand for goods. B) Demand for domestic goods is greater than the domestic demand for goods. C) Demand for domestic goods is less than the domestic demand for goods. D) A budget surplus exists.